NO.PZ202205190400000302
问题如下：
Q. Discuss two reasons why the increased risk profile is appropriate. Justify your response.选项：
解释：
SolutionReasons to justify the increased risk profile include the following:
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The board members’ lower return expectations for public equity and fixed-income asset classes imply a higher level of risk must be taken to achieve the same level of returns.
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For a long-horizon institutional investor like Pell Tech, the ability to tolerate illiquidity creates an opportunity to improve portfolio diversification and expected returns as well as access a broader set of investment strategies. In mean–variance optimization models, the inclusion of illiquid assets in the eligible investment universe may shift the efficient frontier for their portfolio upwards, theoretically resulting in greater efficiency (i.e., higher expected returns will be gained across all given levels of risk).
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The portfolio risk profile for the endowment is currently more conservative in comparison to those of peer universities.
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Smith’s Monte Carlo simulations suggest that the proposed asset allocation has a higher probability of achieving the return target while better preserving the purchasing power of the endowment.
$3.5 billion的规模是很大的了，has access to top manager. 且endowment的investment objective是maintain purchase power into perpetuity，因此投资期很长，也支持increase。
Again，考点是基础班讲义哪里？
